Franchise Ownership is a Myth

In a recent article “Do Franchise Owners Really Own a Business?” Keith Miller addresses franchise ownership head-on:  “Do franchise owners really own a business? That is a very important question. The franchise industry talks about franchise owners as independent business people, working for yourself, but not by yourself. But, what does ownership mean?” Miller goes on to answer: “Usually, if you own something, you have value, or equity, that you can sell. Historically, most franchise agreements contained a “first right of refusal” clause. In most cases, if a franchise owner found a buyer for their franchise, they would first have to offer that to the franchisor under the same terms and conditions.  Unfortunately, for franchise owners, that has taken on a whole new life of its own, with new clauses that eliminate most, if not all, of the equity they have worked…

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